Energy, metal, FMCG, technology, infra and auto stocks mainly fuelled the surge. Barring financials, all major sectoral indices notched up handsome gains. Broader market indices, including small and mid-cap, too, saw a smart rally.
The 50-share Nifty fluctuated widely between 7,484.70 and 7,360.50 before concluding at 7,474.10, a steep rise of 71.85 points, or 0.97 per cent, over its last close.
After initial slump due to global cues and profit- taking, the market rebounded in a dramatic fashion in mid- afternoon, which helped the index to end at a new peak.
Buoyed by better-than-expected Q4 earnings, retail investors are keen to take on new positions ahead of the Union Budget, the next big trigger for the market, on hopes Asia's third-largest economy under the new administration would soon see major growth-supportive policy actions, traders said.
India's GDP has clocked below 5 per cent growth rate in the last two fiscal years.
Meanwhile, other Asian and emerging markets ended mixed in a highly choppy trade.
State-run oil marketing major BPCL was one of the prominent gainers, with its stock surging by a 7.60 per cent to close at a record high of Rs 619.45.
Other key index smart movers included Sesa Sterlite, Hindalco, HUL, Cairn, Tata Power, Tata Steel, Gail, Tata Motors and Jindal Steel.
M&M, HDFC Bank, IndusInd Bank, Cipla, Bank of Baroda, NTPC, ICICI Bank, IDFC, Grasim and Dr Reddy's were among the notable laggards.
Turnover in the cash segment jumped to Rs 25,334.78 crore from Rs 21,342,90 crore yesterday. A total of 16,205.24 lakh shares changed hands in 100,88,153 trades, while market capitalisation stood at Rs 86,23,372 crore.